AT&T To Cut 12,000 Jobs
Telco Cites ‘Economic Pressures’ In Laying Off 4% of Workforce
By Todd Spangler -- Multichannel News, 12/4/2008 4:12:00 AM
AT&T, the largest telecommunications company in the U.S., announced Thursday plans to lay off about 12,000 workers, or 4% of its total workforce, resulting in a $600 million charge in the fourth quarter.
The company cited “economic pressures, a changing business mix and a more streamlined organizational structure” for the cuts. In September, AT&T realigned into four divisions, in an attempt to better bundle wireless and wireline offerings.
AT&T also said it expects to reduce 2009 capital expenditures from 2008 levels. The company will provide guidance on next year's capex plans when it releases fourth quarter results in late January.
AT&T added that it is still adding jobs in other parts of the business, including wireless, video and broadband.
The cuts come after AT&T laid off roughly 4,650 employees this past April, which the company said was part of integrating the operations of its legacy companies, including BellSouth and SBC Communications.
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